IOC buys heavy Ratawi crude in rare tender

By Staff
|
Google Oneindia News

SINGAPORE, Feb 26 (Reuters) Indian Oil Corp (IOC) , the country's biggest refiner, has bought up to 800,000 barrels of Neutral Zone Ratawi sour crude in a rare tender for heavy crude, a company source and a trader said on Monday.

The refiner bought the cargo from U.S. major Chevron at around a .85-6.90-a-barrel discount to Dubai quotes, the trader added.

Price details had yet to be confirmed.

IOC rarely tenders for heavy crude but may start seeking more after it completes a blending facility at Mundra in southern India that will be used to blend crude for the Panipat refinery, traders have said.

The refiner was looking for April-loading crude. Traders expect the Mundra facility to be ready either this month or next month.

The capacity of IOC's Panipat refinery was doubled last year to 240,000 barrels per day and traders said IOC would likely issue similar tenders on a regular basis once the blending facility, and new storage, are completed.

IOC had asked for offers of heavy sour Middle East and South American crudes, such as Brazil Marlim, Colombian Cano Limon or Venezuelan Mesa crude, which the refiner rarely, if ever, buys.

The tender document also mentioned sweet grades such as Equatorial Guinea's Ceiba or Zafiro crude.

IOC, which has about 10 refineries spread across India for a total capacity of 1.204 million bpd, tenders several times a month to buy crude, mainly light sweet West African grades.

REUTERS PV RN1130

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